Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

HSBC to raise £12.5billion as bosses give up bonuses

02 March 2009 / by Rebecca Sargent

HSBC has today announced a rights issue to raise £12.5billion from its shareholders following its 2008 results announcement.

The group revealed that its pre-tax profits fell 62 per cent year on year and now stand at around £6.5billion, making a rights issue necessary to boost HSBC Bank's balance sheet.

HSBC, like other high street banks, has been hit by the sub-prime mortgage market in the US, as it announced losses of $15.5billion in North America.

And, as debates over remuneration continue, HSBC bosses have announced they will not be taking a bonus for 2008.

Commenting on the results, HSBC Group chairman Stephen Green said: "2008 was the most extraordinary year for the global economy and financial services in well over half a century.

"It marked the first crisis of the era of globalised securitisation. And it also marked the first crisis of the just-in time global economy as the impact of the financial crisis fed rapidly straight into the performance of the real economy."

So far this year, profit announcements for Royal Bank of Scotland and Lloyds Banking Group have damaged their reputation and trust, coupled with the fact that both banks have had to receive some hand out from the Government.

As yet, HSBC has abstained from receiving taxpayer money, and its announcement of a rights issue is nothing compared to RBS, which itself made a £12billion cash call last year, before being bailed out by the taxpayer and announcing a loss of £24billion for 2008.

Mr Green added: "We also intend to play our part in rebuilding public trust in our industry.

"It is clear that the banking industry got it wrong in the go-go years: we will play our part in helping the industry respond appropriately to the new realities."